City of Alexandria, Virginia
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MEMORANDUM
DATE: SEPTEMBER 4, 2024
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: HELEN MCILVAINE, DIRECTOR, OFFICE OF HOUSING
DOCKET TITLE:
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Consideration of a Resolution Authorizing the Issuance of Revenue Bonds by the Alexandria Redevelopment and Housing Authority (ARHA) for Housing Alexandria’s Sanse Project in Arlandria. [ROLL-CALL VOTE]
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ISSUE: Consideration of a Resolution regarding issuance of two revenue bonds by ARHA to Housing Alexandria (HALX) sub-entities for upcoming phases of the Sanse Apartments Project in Arlandria (Attachment 1).
RECOMMENDATION: That City Council approve the resolution for bond financings totaling $10 million to support construction of two phases of HALX’s Sanse Apartments Project that will provide 328 affordable rental units.
BACKGROUND: Over multiple phases, Housing Alexandria’s Sanse Apartments Project will construct a total of 416 committed affordable rental units in Arlandria. The bond financings proposed in the Resolution will support two upcoming phases of the project for which Housing Alexandria has secured 4% low-income housing tax credits. HALX’s application can be viewed in Attachment 2. The project is being funded through a variety of sources, including local, state and federal loans and grants, competitive and non-competitive tax credits, bonds and construction and permanent loans. As stated above, the two bond issuances relate to 328 units. HALX’s presentation to the ARHA Board is included in Attachment 3.
DISCUSSION: These bonds represent an important, planned funding source for the project. Although HALX was initially working with the Harrisonburg Housing Authority to secure bond financing, ARHA’s recent re-establishment of its bond function (the program is described in Attachment 4) caused HALX to seek a local issuer. Other materials documenting actions taken by the ARHA Board to approve the bonds, including its resolution, are found in Attachment 5.
As seen in the packet, following notice the ARHA Board approved the bond issuances at its July 22, 2024, public hearing. Pursuant to Section 147 (f) of the 1986 Internal Revenue Code, as amended, City Council, as the governmental unit having jurisdiction over ARHA as the issuer of private activity bonds, as well as the area where the project is located, must approve the issuance of bonds through a Resolution.
FISCAL IMPACT: ARHA has the authority to issue bonds for certain activities. An administrative fee is charged to applicants for the bond financing. As such bonds are conduit revenue bonds, neither the City nor ARHA is obligated to repay the bonds or the interest on the bonds. The obligation rests solely with the borrower.
ATTACHMENT(S):
(1) City Council Resolution regarding Bonds for HALX’s GMV 4A and GMV 4B/the Sanse Project
(2) HALX Bond Application
(3) HALX Presentation to the ARHA Board regarding the Sanse Project
(4) ARHA Revenue Bond Program Description
(5) ARHA Bond Packet, including July 22, 2024, Resolution
(6) Staff Presentation for City Council
STAFF:
Emily Baker, Deputy City Manager
Christina Zechman Brown, Deputy City Attorney
Helen S. McIlvaine, Director, Office of Housing
Eric Keeler, Deputy Director, Office of Housing
Jose Gonzalez, Housing Program Manager, Office of Housing